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Purpose This study aims to study the factors that drive non-users of digital banking services rendered by Islamic banks in Malaysia towards their adoption of digital services in the banking 4.0 era using the innovation diffusion theory (IDT), also known as the diffusion theory of innovation (DOI). Design/methodology/approach IDT theory and literature on intention to adopt digital bank services were reviewed in a bid to contribute to the factors that drive non-users to adopt digital banking. Findings The review suggests that the adoption of digital banking is determined not only by perceived relative advantage, and perceived compatibility but also by additional factors in IDT theory, which are technology self-efficacy and perceived expected benefits. On the contrary, perceived complexity does not turn out to be a factor of digital banking adoption. Research limitations/implications Considering this paper in terms of the limited scope of the theory rendered and the context, it should be given proper attention when interpreting future outcomes when further investigations are brought into play in terms of population and sampling method. Practical implications This paper serves as a guide to ensure the better planning of non-users’ adoption factors related to Islamic bank customers in both theory and practice. Originality/value DOI is extended in the context of digital banking, as evidenced by empirical results, and literature shows that IDT integrated with the technology self-efficacy model is yet to be proposed in the digital banking adoption by Islamic bank customers. Additionally, variables, namely, perceived expected benefits and technology self-efficacy, are proposed in IDT’s existing model. Current findings will therefore serve as a relevant reference for digital technology specialists, policymakers, Islamic banks’ IT managers, academicians and future researchers.
Shaikh et al. (Sat,) studied this question.